Estácio: 2Q11 Earnings Release

8/6/2019 Estcio: 2Q11 Earnings Release

1/28

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F

Str

Re

Rio de JanESTC3; Blo

(2Q11) infollowing fi

Standards (

Highli

Estciostuden

enrolle

distan

Net o2Q11,due to

base.

Consolmillion

margin

Recurri2Q11,

InvesR$68.

Acquisi

At thestood

payme

STC3t 08/10/2011)

rice: R$16.05umber of sha

arket Cap: R

ee Float: 77

aight to

R

curring

eiro, Augusomberg: ES

comparisonancial and

IFRS) and

hts

ended 2Q

ts (up 11.

d in on-ca

ce learnin

perating rgrowing 12

the 11.1

idated recu

, an increa

expansion

ing net in

a 15.2% inc

ments (C

million, o

tions.

end of 2Q

at R$68.2

nt of R$38.3

shareres: 82,251,93

1.3 billion

2Q1the Poin

curring

BITDA

11, 2011C3.BZ; Re

with the saperating in

on a consoli

1 with a t

1% from

mpus prog

programs

evenue wa.3% from t

expansion

rring EBIT

e of 41.7

f 1.9 p.p. o

ome total

rease over 2

PEX and

which R$

1, cash an

million, al

million in di

I

R

Fl

1 Eat: rans

EBITDA

argin

Estcio P

ters: ESTC

e period oormation is

dated basis.

tal base o

Q10), with

rams and

.s R$289.9he prior ye

in the tot

A came t

, accompa

er 2Q10.d R$11.4

Q10.

cquisition

3.8 million

d cash eq

eady dedu

vidends.

Contact:

ogrio Melzi

via de Olivei

+55 (21) 3311

ri@estacioparti

ningparency

of R$2

f 9.1%,

articipa

.SA) annou

the previopresented i

f 238,700

204,700

34,000 in

million inr, mainly

l student

o R$26.5

ied by a

million in

) totaled

went to

ivalents

cting the

C

ra IR

-9789

cipacoes.com

s RelFunda

.5 millio

up 1.9

s S.A.

ces its res

s year (2Q1accordanc

O

Manager

easeentals

n in 2Q

.p. yea

stcio or

lts for the

0). Exceptwith Inter

nd Res

1,

-over-y

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second qu

here statedational Fin

lts.

ar.

(BM&FBoves

rter of 20

otherwise,ncial Repor

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essag

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r new cour

eparation f

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fore going

mand from

publicly h

able you to

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aging of

the balan

direct and

Acquisitiacquisitio

of the ac

Non-rec

have hap

Indebte

commitm

included

aving menti

41.7% on

r payroll

changed fr

er 2Q10. D

nancial Highl

et R evenue (

ecurring Gro

ecurring Gross

ecurring EBI

ecurring EBIT

ecurring EBI

ecurring EBIT

ecurring Net

ecurring Net I

dicator

from

ced a deter

ange, parti

organic gro

ses, receive

r the launc

. Here we aook three y

into the de

investors a

ld compani

measure ou

les: analys

greements

e sheet an

mechanical

ons: analys within th

uisitions ap

rring item

ened only a

ness: now

nts to pay

ll and any b

ned this, le

2Q10. Thou

nd ended

m last year

livering this

ights

R$ million)

s Profit (R$

Profit margin

argin

DA

A Margin

Income (R$

come Margin

s in th

Manag

ioration in t

ularly in th

th in the o

excellent

of tablets

re very motiars ago at

ails of our

d analysts f

s. Through

r true perfor

is of the e

nd due rec

the amoun

result of th

is of oursame year

roved at Sh

s: we have

t that mom

that we h

to the seller

alance of ta

us go to th

gh we are s

he quarter

(i.e., with n

robust gro

illlion)

illlion)

Perio

ement

e internatio

Education

-campus b

scores in in the secon

ated, workihe beginnin

esults, we

r greater tr

ut the repo

mance as a

olution of a

nciliation b

ts expensed

aging of o

performanceand at the

areholders

detailed th

nt, and the

ave resume

s, we have

es payable i

results. Ou

till harmed

with the o

volume inc

th with a si

2Q10

258.2

72.4

28.0%

11.0

4.3%

18.7

7.2%

9.9

3.9%

C

2

nal scenario

sector, Est

se, conclud

loco visits,d semester

ng with higof this ne

ould like t

ansparency

rt, we have

company pr

ccounts rec

tween the

. Note that

r accounts r

under thame time p

eetings;

nature of

respective j

d acquisitio

included su

in installmen

r consolidat

y the step-

n-campus

rease), our

nificant ma

2Q11

289.9

87.9

30.3%

17.1

5.9%

26.5

9.1%

11.4

3.9%

onsolidated

2

in recent

io has been

ed new acq

launched t

of 2011 for

spirits andphase at E

let you kn

in the accou

provided th

viding post

eivable and

alance of P

ur PDA is n

eceivable;

same shoroviding info

ach item t

stification;

ns and a p

h balances

ts in the me

d recurring

p in the so

ase, exclu

consolidated

gin gain is

Change

12.3%

21.4%

2.3 p.p.

55.5%

1.6 p.p.

41.7%

1.9 p.p.

15.2%

0.0 p.p.

11 Ea

onths and

living its b

isitions, ob

o greenfiel

our law stu

certain thattcio.

ow that we

nting and fi

key indica

secondary

days receiv

rovision for

ot estimat

ps concept,rmation abo

at we belie

nd

art of thes

in our debt

dium and lo

EBITDA tot

ial security

ing acquisi

recurring E

matter of g

2Q10

258.2

72.4

28.0%

11.0

4.3%

18.7

7.2%

9.9

3.9%

Exc

rnings

he critical d

st moment

ained a seri

ld projects,

ents in Rio

we are on t

received in

ancial infor

tors clearly

ducation, in

able, aging

Doubtful Ac

d by Manag

separatingut the speci

e had a sp

e are finan

figures. Si

g term.

led R$26.5

contribution

ions, remai

ITDA margi

reat pride fo

2Q11

277.2

84.1

30.3%

16.4

5.9%

25.6

9.2%

11.0

4.0%

luding Acqui

elease

evelopment

in recent ye

es of appro

and comple

de Janeiro

he right trac

good spirit

ation provi

and in detai

cluding:

of receivab

ounts (PDA

ement but

the effectic performa

ecific reaso

ed by way

ilarly, we h

million in 2

(INSS) rate

ning practic

n grew 1.9

r us.

Change

7.4%

16.2%

2.3 p.p.

49.1%

1.6 p.p.

36.9%

2.0 p.p.

11.1%

0.1 p.p.

it ions

in

rs.

als

ted

nd

k

the

ed

l to

les,

) in

the

ofnce

to

of

ave

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ally

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t

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t

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in

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s

u

ote that this

om the clea

r products,

ccessive re

licies, our

sume grow

se already

hart 1 O

order to fu

d dedicatin

arket that

en another

thorized by

so on-camp

tcios Dist

covered in

ve also im

eater suppo

a result of

e same sh

andardizatio

e same ti

ficiency of a

the Cost lin

ITDA margi

l our acqui

eeting, in w

pport to ou

its acquire

Chart: On-camacquisitions in

scenario be

up of our s

the launch

cord enroll

rganic on-c

h from the

howed an i

-campus

rther capita

our effort

emands qu

1,000 new

the Ministry

s, are waiti

ance-Learni

Q11 and p

roved our

rt and respo

all this, our

ops concep

n has star

e, advance

cademic pla

es. All told,

n.

itions (Atua

hich shareh

quest for s

to enable

pus undergradthe 1H11.

gan to chan

tudent base

of the dist

ents in th

ampus bas

second half

crease of 4.

ndergrad

lize on this

o our cour

lified labor.

municipal

, correspon

g for the M

g Operatio

sted an 11.

tudent tuto

nsiveness fr

revenue in

t. In this

ted to pres

made in t

nning activit

we have on

l, FAL, FAT

lders had t

nergies am

he market

ate students b

e the mom

in 2008 and

nce-learnin

last two s

is now eq

of 2011. At

9%, compar

ate Stude

rganic gro

e grouping

Estcio has

ourses. O

ing to 5,04

nistrys app

s, which pl

4% gain in

ring and on

m our prof

reased 12.

ontext, our

nt concrete

e impleme

ies and impr

ce again sta

RN, Acade

he opportun

ong our new

o monitor t

ase excluding

3

nt when all

the change

program,

emesters.

al to what

the end of

ed to the e

ts base

th of the st

to continue

already ap

this total,

new seats

roval, corre

ay an impo

he number

line assista

ssors.

% on a co

managem

results afte

tation of o

oved mana

rted posting

ia do Con

ity to take

units. In t

e performa

2

our efforts

in the rules

and the se

s a result,

it was a ye

the 1H11,

d of 2010.

Chart 2

udent base,

taking adva

lied to the

42 of the

(set to be la

ponding to

rtant role i

of enrollme

ce. We no

solidated b

nt model

a natural d

ur educatio

ement of o

organic gro

urso) were

detailed lo

is release,

nce and im

Chart: UnderStudents Bas

11 Ea

uring the th

for credit,

up of a sal

despite the

ar back and

ur on-camp

Distance

we have b

ntage of th

Ministry of

n-campus

unched duri

14,880 new

maintainin

ts over the

have 34,0

sis and 7.4

based o

ilution of fix

al model a

r assets ha

wth with gai

approved b

ok at the b

e will provi

act thereof

raduate and G.

rnings

ree years o

ill the comp

es task forc

increasingl

we are fir

us undergr

Learning

en paying s

opportuniti

ducation fo

ourses hav

ng 2012), a

seats.

g our grow

same perio

00 students

excluding

centralizat

ed costs an

t our Units,

e started to

ins in reven

y the Annu

siness plan

e the main

in our cons

aduate Distanc

elease

restructurin

lete redesig

e resulte

stricter cr

ly on trac

duate stud

tudents B

pecial atten

s in a Brazi

r permissio

already b

d 124 cour

th moment

last year.

who count

acquisitions

ion, scale

expenses.

the increa

provide res

e, EBITDA

l Sharehold

and lent t

numbers of

lidated res

e Learning

g

of

in

dit

to

nts

se

ion

lian

to

en

es,

m,

We

on

, in

nd

At

ing

ults

nd

ers

eir

the

lts.


4/28

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7.

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f

p

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st

Ac

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T

owever, we

argins of 1

te of return

nergies. W

esented in

hievement

ur Cash po

lating to fis

ying divide

vested R$6

erating wit

iggered a se

med at the

praisal and

nsolidated

.7% on 2Q1

e have add

Key Mate

for our gr

Sustainab

and corpo

hrough this

mpanys re

cus on impr

th to sustai

tudentcio ended

udents enro

ual, FAL anme to 228,

ble 1 To

te: Acquisition

00

On-Camp

Under

Gradu

Distance L

Under

Gradu

otal Studen

2011

otal Studen

would like

.5% and 17

(IRR) of th

would lik

the busine

o the variab

ition ended

cal year 201

nds serves

.8 million i

h lower am

ries of actio

adoption of

variable co

ecurring ne

and 1H10,

d two new

ial Facts, w

owth and co

ility Projects

rate sphere

report, we

ent accomp

oving the qu

nable growt

Basethe second

lled in on-c

d FATERN.00 students

tal Studen

in 2011 refer

s

graduate

ate

earning

graduate

ate

t Base ex-A

Acquisitions

t Base

to highlight

.5%, respe

investmen

to reaffir

s plan and

le compens

the quarter

0, as we b

as another

CAPEX an

unts of ca

s that are i

EVA (Econ

pensation o

income tot

respectively

ections at t

ere we hav

nsolidation

, where we

and which

ope to shar

lishments, o

ality of our

.

quarter with

mpus progr

Discarding tin 2Q11, 6.

Base

o the total stu

cquisitions

the perfor

tively, in th

, as we beli

that the f

automatica

tion of our

with R$68.

lieve that b

instrument

Acquisition

h has signi

portant for

mic Value

f our Execut

led R$11.4

.

e end of th

detailed a

trategy;

ave describ

are increasi

with our s

ur commitm

ervices and

a student

ms and 34,

e acquisitio% more th

ent base of At

2Q10

193.9

182.8

11.1

20.9

19.2

1.7

214.8

-

214.8

4

ance of A

quarter. N

ve that thi

inancial res

lly incorpor

xecutives.

.2 million.

sides provi

of financial

s to contin

ficantly incr

the Compa

dded) as a

ives.

million and

report, as

ew operatio

ed the Com

gly a part o

areholders

ent and our

results, as

base of 23

000 in dista

ns in 2011,n in 2Q10.

al, FAL and FA

2Q11

194.7

181.6

13.1

34.0

31.4

2.6

228.7

10.0

238.7

2

ual and FA

ote that the

metric con

lts of all t

ted into t

During 2Q1

ing remun

discipline

e our grow

eased our

y, notably t

measure of

$44.5 millio

escribed be

nal and fina

anys social

our institut

nd the mar

energy to c

ell as our c

,700 studen

nce-learning

the studen

TERN.

Change

0.4%

-0.7%

18.0%

62.7%

63.5%

52.9%

6.5%

N.A.

11.1%

11 Ea

ERN, whic

basis for th

iders the b

e business

e Company

, we paid

ration for s

or the Co

th projects.

ttention to

he decision

Estcios p

n in 2Q11 a

low:

cial achieve

responsibilit

onal agend

et in gener

ntinue work

rtainty that

ts (up 11.1

programs, i

base, unde

rnings

posted re

is evaluatio

siness futu

s acquired

s targets,

ividends of

areholders,

panys man

As we will

financial m

to begin a s

rformance

d 1H11, up

ments that

y initiatives

.

l our enthu

ing hard wit

we are follo

from 2Q10

ncluding th

r the same

elease

urring EBI

is the inte

e potential

by Estcio

onditioning

R$38.3 mil

the practic

agement.

explain bel

nagement

ries of proj

nd a vecto

15.2% and

re importan

in the acade

iasm with t

h the zeal a

wing the rig

), with 204,

acquisition

shops conc

DA

nal

nd

are

its

lion

of

We

w,

nd

cts

of

t

mic

e

d

t

00

of

pt,


5/28

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sc

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hi

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S

the end of

cluding stu

udent base

ter two con

ble 2 Ev

s.: The line Acmpanies acquir

2Q11, ind

ansparency,

zeable class

e strong e

mester. Altsts in the f

n the other

gher enroll

e course, w

ter two ma

udents acco

the distan

flecting a s

ble 3 Gr

00

tudent s - S

(-) Students

Student Bas

(-) Droupout

Droupouts R

tudent s ex.

(+) Acquisiti

tudent s - E

00

tudent s - S

(-) Droupout

Droupouts R

nrollment R

(+) Enrollme

tudent s - E

2Q11, Est

ents from

would be 18

ecutive rec

olution of

quisitions refered in 2011 (At

icators of d

we have di

and drop-o

nrollment v

ough thisture.

hand, the i

ent in the l

ith a higher

sive enroll

unted for 36

e learning

ries of succ

owth in Di

tart ing Bala

not enrolled

enrolled in

s

ate

Acquisition

ns

nding Balan

tart ing Bala

s

ate

enewals

nts

nding Balan

cios underg

he institutio

1,600, abou

rd enrollme

n-Campu

to the total unal, FAL e FATE

rop-out wer

vided this i

t due to ab

lume in 1

ay imply lo

crease in d

st two cycl

share of th

ents, this fi

.4% of the

egment, th

ssful enroll

tance-Lea

nce

in class

lasses

s - Ending B

e

nce

e

raduate stu

ns acquired

the same a

ts.

Undergra

dergraduate onN).

e higher th

dicator into

ndon of the

11 allowed

ss of reven

rop-out due

s. As first-

e student m

ure should

tudent base

undergrad

ents and th

ning Base

2Q10

190.3

(1.8

188.5

(5.7

-3.0

al 182 .8

-

182.8

2Q10

14.9

(2.1

-14.1

12.8

6.4

19.2

5

ent base t

in the sem

s in 2Q10,

uate Stud

-campus stude

an in 2Q10

two compo

course by t

us to be

e in the sh

to abando

and second-

ix consistin

naturally in

, compared

uate studen

e launch of

(undergra

2Q11

193.7

) (3.3)

190.4

) (8.8)

-4.6%

181.6

10.0

191.6

2Q11

28.2

) (4.0)

-14.2%

24.2

7.2

31.4

2

taled 191,6

ster (Atual,

howing that

ent Base

nt base of the

. In order

nents: drop

e student d

ore restricti

ort term, fo

of the cou

semester st

of student

rease. In fa

to 42.4% in

t base grew

new courses

uate)

Change

1.8%

83.3%

1.0%

54.4%

-1.6 p.p.

-0.7%

N.A.

4.8%

Change

89.3%

90.5%

-0.1 p.p.

89.1%

12.5%

63.5%

11 Ea

0 students,

FAL and F

our student

o facilitate

out due to

uring the se

ve when o

rming larger

rse by the

dents are

in the com

ct, in 1Q10,

1Q11.

63.5% yea

.

rnings

4.8% mor

TERN), the

base starte

understandi

lack of stu

mester.

ening new

classes wil

tudent dire

ore likely t

mencement

first- and s

r on year t

elease

than in 2

undergradu

to grow a

ng and ens

ents to for

classes for

reduce fac

tly reflects

drop out fr

of their co

cond-seme

reach 31,4

10.

ate

ain

ure

a

the

lty

the

om

rse

ter

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6/28

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R

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perati

2Q11, netse, while n

ble 4 Br

e on-cam

cluding acq

flationary a

ble 5 Ca

e distance

e ticket in 1

ble 6 C

$ MM

ross Operating

Monthly Tuitio

Others

ross Revenue

Scho larships a

Taxes

Deductions /

et Operating R

$ MM*

ross Revenu

eductions - On

et Revenue -

n-Campus Stu

verage TicketUnless otherw

$ MM*

ross Revenue

eductions - Dis

et Revenue -

istance Learnin

verage TicketUnless otherw

g Rev

operatingt operatin

eakdown

us averag

uisitions, th

justment to

lculation o

learning a

Q11.

lculation

Revenue

n Fees

eductions

d Discounts

ross Operating

evenue

- On-Campu

-Campus

On-Campus

ents - Total (

- On-Campuise stated.

- Distance L

tance Learning

Distance Lea

g Students - T

- Distance Lise stated.

enue

evenue tog revenue

f Operatin

e ticket in

e average t

our tuitions.

f Average

verage tic

f Average

evenue

00)

(R$)

arning

rning

otal (000)

arning (R$)

aled R$289.xcluding

g Revenue

2Q11 came

icket increa

.

icket On

et was R$1

Ticket Di

2

6

9 million, upcquisition

to R$443.7

ed 4.9%, r

-campus

70.6, 1.9% l

tance Lea

Q10 2

369.2

364.8

4.4

(111.0) (

(100.1)

(10.8)

30.1%

258.2

2Q10

354.2

(106.9)

247.3

194.5

423.8

2Q10

15.0

(4.1)

10.9

20.9

173.8

2

12.3%, thatotaled R$

, a 4.7% in

eflecting ou

ower from t

ning

11 Chan

369.2 10

364.8

4.4 8

111.0) 6

(100.1)

(10.8) 1

30.1% -1.2

258.2 12

2Q11

382.1

(109.6)

272.5

204.7

443.7

2Q11

25.7

(8.3)

17.4

34.0

170.6

11 Ea

nks to the 177.2 million

rease over

purpose a

e same per

ge 1H

.5%

.5%

.6%

.2% (

.1% (

.6%

p.p.

.3%

Change

7.9%

2.5%

10.2%

5.2%

4.7%

Change

71.3%

102.4%

59.6%

62.7%

-1.9%

rnings

1.1% growt, up 7.4% y

the same p

nd success

iod last year

10 1H1

34.6 8

726.8 7

7.8

20.4) (2

198.8) (2

(21.6) (

30.0% 2

14.2 5

2Q11 ex-acquisitions

366.1

(106.3

259.8

194.7

444.8

elease

in the studar on year.

eriod last y

in applying

but in line

1 Chang

06.0 9.7%

94.0 9.2%

12.0 53.8%

40.3) 9.0%

16.3) 8.8%

24.1) 11.6%

9 .8% -0 .2 p.p

65.7 10 .0%

Change

3.4%

) -0.5%

5.1%

0.1%

4.9%

ent

ar.

the

ith

.


7/28

To

r

c

T

T

T

T

R

C

C

R

C

(

(

C

R

N

C

G

(-

(-

R

R

ost of

e ratio ofrfaculty co

unicipal pro

venue grow

sts resultin

ble 7 Br

ble 8 Ve

ble 9 Co

ross Ible 10 S

$ MM

ash Cost of Se

Personnel

Salaries and

Brazilian Soc

Rentals/ Real

Textbook Mat

Third-Party Se

of Net Opera

ash Cost of Se

Personnel

Salaries and

Brazilian Soc

Rentals/ Real

Textbook Mat

Third-Party Se

$ MM

ash Cost of Se

) Depreciation

) Non-Recurrin

ost o f Services

$ MM

et Operating Re

st of Se rvices

ross Profit

) Non-Recurring

) Depreciation

ecurring Cash

ecurring Cash G

Servic

curring cats (gain of

perty tax (I

th of aroun

from impro

eakdown o

rtical Anal

st Reconcil

cometatement

rvices

Payroll Charges

ial Security Institut

state Tax Expe

erials

rvices and Ot he

t ing Revenue

rvices

Payroll Charges

ial Security Institut

state Tax Expe

erials

rvices and Ot he

rvices

Costs

venue

Costs

Gross P rofit

oss Margin

s

sh cost to2.5 p.p.),

PTU) (gain

12% (7%

ved scalabili

f Cost of S

sis of Cos

iation

f Gross In

e (INSS)

nses

rs

e (INSS)

nses

rs

net revenuutsourced

of 0.5 p.p.)

excluding a

ty and centr

rvices

of Service

ome

2

2

2

2

7

e climbed 2ervices (ga

, which mo

quisitions),

alization.

s

Q10 2

(180.2) (

(137.4)

(114.6)

(22.7)

(24.3)

(4.3)

(14.2)

Q10 2

-69.8% -

-53.2%

-44.4%

-8.8%

-9.4%

-1.7%

-5.5%

Q10 2

(180.2) (

(5.7)

(0.1)

(186.0) (

Q10 2

258.2

(186.0)

72.2

0.2

5.7

78.1

30.2%

2

.2 p.p., maiin of 0.8 p.

e than offs

we could de

11 Chan

196.1) 8

(147.0)

(120.4)

(26.6) 1

(25.8)

(9.6) 12

(13.7) -

11 Chan

67.6% 2.2

-50.7% 2.5

-41.5% 2.9

-9.2% -0.

-8.9% 0.5

-3.3% -1.6

-4.7% 0.8

11 Chan

196.1) 8.8

(5.8) 1.8

(1.4) 1300.

203.3) 9.3

11 Chan

289.9 1

(203.3)

86.5 19

1.4 60

5.8 1

93.7 20

32.3% 2.1

11 Ea

ly due to a.p.) and re

t the textb

monstrate t

ge 1H

.8% (

.0% (

5.1%

7.2%

.2%

.3%

.5%

ge 1H

p.p. -6

p.p. -

p.p.

p.p.

p.p.

p.p.

p.p.

ge 1H

(

0%

(

ge 1H

.3%

.3% (

.8% 1

.0%

.8%

.0% 1

p.p.

rnings

more efficiets, condom

ook materia

he effects o

10 1H1

38.7) (3

258.1) (2

(214.8) (

(43.4)

(47.9) (

(6.5) (

(26.2) (

10 1H1

5.9% -6

50.2% -4

-41.8% -

-8.4%

-9.3%

-1.3%

-5.1%

10 1H1

38.7) (3

(11.2) (

(4.6)

54.5) (3

10 1H1

514.2 5

354.5) (3

59.7 1

4.6

11.2

75.5 1

34.1% 3

elease

t manageminium fees

l costs. Wit

the dilutio

1 Chang

67.2) 8.4

79.6) 8.3

228.3) 6.3

(51.4) 18.4

50.9) 6.3

12.7) 95.4

24.0) -8.4

1 Chang

.9% 1.0 p.

9.4% 0.8 p.

40.4% 1.4 p.

-9.1% -0.7 p.

9.0% 0.3 p.

2.2% -0.9 p.

4.2% 0.9 p.

1 Chang

67.2) 8 .4%

11.3) 0.9%

(4.9) 6.5%

83.4) 8 .2%

1 Chang

65.7 10.0

83.4) 8.2

82.4 14.2

4.7 2.2

11.3 0.9

98.4 13.0

5.1% 1.0 p.

entnd

h a

of

.

.

.

.

.

.

.

.


8/28

St

o

r

S

a

q

in

s

T

T

R

S

S

elling,

lling, genthe gain of

scale here

venue. In E

l l ing expe

vertising e

arter. As w

tensive mar

rvices.

ble 11 B

ble 12 V

$ MM

elling, General

Selling Expen

Provisions f

Marketing

General and

Personnel

Salaries

Brazilian

Others

Third-PMachine

Consum

Mainten

Provisio

Other

Others

of Net Opera

elling, General

Selling Expen

Provisions f

Marketing

General and

Personnel

Salaries

Brazilian

Others

Third-P

Machine

Consum

Mainten

Provisio

Other

Others

Gener

ral and ad1.0 p.p.in p

as there is n

tcios busi

nses corre

penses. Th

e increase t

keting and

reakdown

ertical Ana

and A dministr

ses

or Doubtful Deb

dministrative

and Payroll Char

Social Security I

rty Se rvicesry rentals and le

able Mate rial

ance and Repair

for Contingenc

perating Renev

t ing Revenue

and A dministr

ses

or Doubtful Deb

dministrative

and Payroll Char

Social Security I

rty Se rvices

ry rentals and le

able Mate rial

ance and Repair

for Contingenc

perating Renev

l & Ad

ministratiersonnel ex

o need to e

ess model,

ponded to

increase i

he efficienc

commercial

of Selling,

lysis of Sel

ative Cash Exp

ts

Expenses

ges

nstitute (INSS)

asing

ies

e (expenses)

ative Cash Exp

ts

Expenses

ges

nstitute (INSS)

asing

ies

e (expenses)

ministr

e expenseenses and

pand our a

more reven

11.0% of 2

advertising

gains in G

efforts, sh

General &

ling, Gener

2

enses

2

enses -2

-1

-

-

-1

-

-

-

-

-

-

-

-

-

8

ative E

s recorded.8 p.p. in t

ministrativ

e means hi

11 net rev

expenses

&A expense

wing our t

dministra

al & Admi

Q10 2

(63.4)

(25.7)

(15.1)

(10.6)

(37.7)

(17.1)

(14.0)

(3.1)

(20.6)

(9.4)(0.7)

(0.3)

(0.1)

(2.3)

3.4

(11.2)

Q10 2

4.6% -23

0.0% -11

5.8% -6.

.1% -4.

4.6% -12

6.6% -5.

5.4% -4.

1.2% -0.

8.0% -7.

3.6% -2.

0.3% -0.

0.1% -0.

.0% 0.

0.9% -0.

.3% 0.

.3% -4.

2

xpens

n efficiencyird-party se

structure t

her margin

nue, 1.0 p.

eflects the

increases,

rget public

tive Expen

istrative E

11 Chan

(68 .4) 7.9

(31 .8) 23 .7

(17.5) 15.9

(14.3) 34.9

(36 .6) -2.9

(16.2) -5.3

(13.8) -1.4

(2.3) -25.8

(20.4) -1.0

(8.3) -11.7(0.3) -57.1

(0.4) 33.3

- N.A

(0.5) -78.3

2.3 -32.4

(13.2) 17.9

11 Chan

.6% 1.0

.0% -1.0

0% -0.

9% -0.

.6% 2.0

6% 1.0

8% 0.7

8% 0.4

0% 1.0

9% 0.8

1% 0.2

1% 0.0

0% 0.0

2% 0.7

8% -0.5

6% -0.2

11 Ea

s

gain of 1.0rvices. We o

cope with

.

p. higher th

ame strate

we employ

the differe

es

penses

ge 1H

(1

%

%

%

%

%%

%

.

%

%

%

ge 1H

p.p. -24.

p.p. -9 .

p.p. -3.

p.p. -5.

p.p. -14.

p.p. -6.

p.p. -5.

p.p. -1.

p.p. -8.

p.p. -4.

p.p. -0.

p.p. -0.

p.p. -0.

p.p. -0.

p.p. 1.0

p.p. -3.

rnings

p.p. over 2nce again r

the larger st

an in 2Q10

y adopted

a part of th

ntials of ou

10 1H1

24.3) (1

(50 .1) (

(20.1) (

(30.0) (

(74 .2) (

(33.0) (

(27.4)

(5.6)

(41.2) (

(22.2) ((1.6)

(0.7)

(0.3)

(2.3)

5.0

(19.1) (

10 1H1

2% -23.2

% -10.7

% -4.0

% -6.7

4% -12.4

% -5.6

% -4.5

% -1.0

% -6.9

% -3.3

% -0.2

% -0.1

% 0.0

% 0.5

% 0.7

% -4.4

elease

10, mainlyap the ben

udent base

, due to hig

in the previ

is gain in m

r products

1 Chang

31.1) 5.5%

6 0.8) 21.4%

22.8) 13.4%

38.0) 26.7%

7 0.3) -5.3%

31.5) -4.5%

(25.7) -6.2%

(5.9) 5.4%

38.8) -5.8%

18.5) -16.7%(1.4) -12.5%

(0.8) 14.3%

- N.A.

2.7 N.A.

4.1 -18.0%

24.9) 30.4%

1 Chang

% 1.0 p.

% -1.0 p.

% -0.1 p.

% -0.9 p.

% 2.0 p.

% 0.8 p.

% 0.8 p.

% 0.1 p.

% 1.1 p.

% 1.0 p.

% 0.1 p.

% 0.0 p.

0.1 p.

0.9 p.

-0.3 p.

% -0.7 p.

uefits

nd

her

ous

ore

nd

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.


9/28

T

P

r

in

h

r

o

Bc

A

T

1

I

I

e

p

T

o

p

R

R

S

S

ble 13 R

ovisions for

flect a grow

creasing (s

s never im

ler (proact

fenders we

siness Intembined wit

ministrativ

e Compan

,200 in 2Q

vest, and b

this quarte

titled Agor

eferably thr

sum up,

erating in

rtially offse

ceivables it

$ MM

elling, General(+) Depreciati

(-) Non-Recurr

elling, General

econciliati

doubtful a

ing efficien

e the item

lemented s

ive collectio

e blackliste

lligence sysh setting u

Manager),

provided i

1. Estcio

gan to grad

r, we held a

a Vai to re

ough FIES fi

lthough del

razil, Estci

t any poten

em bellow.

and Ad ministrn

ing Expenses

and Ad ministr

n of Expe

counts, wh

y in the ma

Accounts R

many initia

ns among e

d and servi

em to conof specific

nd maintai

ncentives to

lso worked

ually use a l

massive ca

cover outst

nancing.

inquency le

s team is

ial worsenin

ative Cash Exp

ative Expenses

ses

ich remaine

nagement o

ceivable an

tives to addr

xisting stud

ces of colle

rol delinquePDA target

ed strict cri

the FIES

on the laun

nger-term

paign, inv

nding amo

els have sl

ot idle to t

g of the ex

2

enses

9

virtually s

f receivable

d Average

ess the issu

ents), stude

ction comp

ncy levelss for each

eria for deb

ffering, exp

h of the P

inancing to

lving sever

nts from d

ightly incre

e develop

ernal scena

Q10 2

(63.4)(2.0)

(1.6)

(67.0)

2

table from

. If on the

eceivable D

e. This quar

nts with a

nies were

enabling fonit (linked

t renegotiati

anding the

aValer pro

l provided b

l areas of E

faulting stu

sed, as not

ents and be

io. More de

11 Chan

(68.4) 7 .9(3.5) 75.0

(2.1) 31.3

(73.9) 10.3

11 Ea

010 as a

ne hand d

ays), on th

er, Estcio

istory of d

idely used.

low-up byo a bonus-

n and appr

base from

ram in part

y Ita for st

tcio (Finan

ents and e

iced in the

lieves that t

tails on rec

ge 1H

(1%

%

% (1

rnings

ercentage

linquency l

e other han

idely used

elayed pay

. Estcio al

ourse, camrelated targ

val.

4,700 stude

nership with

dents with

ce, Operati

ncourage th

reports of

hese measu

ivables are

10 1H1

24.3) (1(3.9)

(3.2)

31.4) (1

elease

f net reven

vels have b

d the Comp

its delinque

ents or rep

o develope

pus and sht for the l

nts in 2Q10

Ita and I

bigger debt.

ns, Marketi

em to re-en

he main ba

res will at l

available in

1 Chang

31.1) 5 .5%(7.2) 84.6%

(3.2) 0.0%

41.5) 7 .7%

ue,

en

any

ncy

eat

a

ift),cal

to

eal

g),

roll

nks

ast

the


10/28

R2

I

T

I

9.

T

t

(

(

(

(

R

N

(-

(-

(

R

R

(-

R

R

BITDA

ecurring E10, mainly

SS , the inc

ble 14 S

the same s

.2%, up 2.0

ble 15 S

e same sh

$ MM

et Operating

-) Cash Cost of

-) Selling, Gene

+) Operating Fi

ecurring EBIT

ecurring EBITD

-) Depreciation

ecurring EBIT

ecurring EBIT

$ MM

et Operating R

) Cash Cost of S

) Selling, Gener

) Operating Fin

ecurring EBITD

ecurring EBITDA

) Depreciation a

ecurring EBIT

ecurring EBIT M

BITDA camdue to the

rease in tex

tatement

hops conce

p.p. over 2

tatement

ops concep

Revenue

Services

al and Administr

ancial Result

DA

Margin

and Amortizatio

argin

evenue

ervices

l and Administra

ancial Result

A

Margin

nd Amortization

argin

e to R$26.5better man

book materi

f Earnings

t, recurrin

10.

f Earnings

t

ative Cash Expe

tive Cash Expen

million, acgement of

al costs and

before Int

EBITDA c

before Int

nses

ses

10

ompaniedpersonnel c

marketing e

rest, Tax,

ame to R$2

erest, Tax,

2Q10 2

258.2

(180.2)

(63.4)

3.8

18.7

7.2%

(7.7)

11.0

4.3%

T10 2Q1acqui

258.2

(180.2)

(63.4)

3.8

18.7

7.2%

(7.7)

11.0

4.3%

2

y an EBITsts and ex

xpenses.

Depreciati

.6 million,

Depreciati

Q11 Cha

289.9 1

(196.1)

(68.4)

1.1 -7

26.5 4

9.1% 1.

(9.3) 2

17.1 5

5.9% 1.

1 ex-sitions Chan

277.2 7

(187.5)

(64.8)

1.0 -7

25.6 36

9.2% 2.0

(9.2) 1

16.4 49

5.9% 1.6

11 Ea

Amarginenses, whic

n and Am

ccompanied

n and Am

ge 1

.3%

8.8%

7.9%

1.1%

.7%

p.p.0.8%

.5%

p.p.

ge 1H

.4%

.1% (

.2% (

.7%

.9%

p.p..5%

.1%

p.p.

rnings

of 9.1%, uh offset the

rtization (

by an EB I

ortization

10 1H

514.2

(338.7) (

(124.3)

7.2

58.4

11.4%

(15.1)

43.3

8.4%

10 1H11acquisi

14 .2 5

338.7) (3

124.3) (1

7.2

58.4

11.4% 1

(15.1) (

43.3

8.4% 1

elease

p 1.9 p.p. ostep-up of

EBITDA)

DA margi

EBITDA)

11 Chang

65.7 10.0

367.2) 8.4

(131.1) 5.5

6.9 -4.2

74.3 27.2

13.1% 1.8 p.

(18.5) 22.5

55.8 28.9

9.9% 1.5 p.

ex-ions Chang

48.5 6.7

55.2) 4.9

27.1) 2.3

6.9 -4.2

73.0 25.1

3.3% 1.9 p.

18.3) 21.2

54.7 26.3

0.0% 1.6 p.

verthe

of

In

e

%

%

%

%

%

p.%

%

p.

.

.


11/28


12/28

A2

p

T

I

r

p

in

oin

a

O

U

w

p

T

A

t

w

(i

(ii

(ii

A

le

R

N

R

R

R

R

R

R

cquire

of this qu11. We wi

rformance i

able 17

2Q11, the

corded posi

ase of inte

tegrated int

iginal busintegration (w

d reasonabl

n the other

argin in thei

nlike FATER

hich should

ocess to bri

is unit sho

odel in 1H1

ademia do

an in our b

ith the plan,

) the totalservices,

) The launi) The speeart from th

arning platf

$ million

et Revenue

ecurring Gr

ecurring Gro

ecurring EB

ecorring EBI

ecurring Ne

ecurring Net

com

rter, Estcill provide th

n the same

ain Figu

acquired c

tive recurrin

ration, will

the manag

ess plan apith the star

e operating

and, FAL (i

r first quart

N, FAL work

occur in 2

ng together

uld underg

.

Concurso p

siness plan,

such as:

integration

while freein

h of the ma

ding up of i

improvem

rm and its f

ss Profit

s Margin

ITDA

DA Margin

t Income

Income Mar

anies

will presenese details

hops conce

es of the

mpanies, A

g EBITDA

implement t

ement mod

proved at tup of the e

margins for

Natal, Rio

r results.

s with an e

11. The un

and create

several op

sted negati

the new un

of its suppo

up space f

nagement

tegration w

nts to the p

ranchise net

Atual

4.8

1.5

31.4%

0.9

19.5%

0.9

in 17.8%

t a chart wip to 12 mo

pt.

Acquired

ual (in Boa

argins of 1

e new acad

l, such that

e Shareholucational

a pre-integr

Grande do

rollment sy

it is already

ynergies fro

erational im

e recurring

it has alrea

t structure

or more clas

odel throug

th the Shar

rocesses in

work for the

FAL FA

2.2

0.4

18.7% 3

-0.1

-5.9% 1

-0.2

-8.5% 1

12

h the mainnths from t

ompanie

Vista, Rorai

9.5% and

emic model

the Compa

ers Meetinodel sched

tion period.

orte) and t

stem by whi

being inte

m the two

provements

EBITDA of

y been ado

to those of

srooms and

h the Zero-

d Services

ur on-camp

nationwide

TERN FAB

3.1 0.

1 .1 0.

6.0% 16.

0.5 0.

7.5% 11.

0.3 0.

0.2% 11.

2

results of the acquisitio

s

ma) and F

7.5%, resp

as of the s

y believes i

g. FATERN,led for 1H1

e Academia

ch margins

rated with

cquisitions

until the i

R$0.5 millio

ting a serie

Estcio in or

a broader c

Based and

enter (CSC)

us business,

expansion o

ECAcade

doConc

4 2.

1 0.

% 34.

0 -0.

% -21.

0 -0.

% -24.

11 Ea

e units acqto enable

TERN (in N

ctively. Atu

cond half o

s results wil

in turn, th), registere

do Concurs

improve dur

the implem

nd Estcios

plementati

in 2Q11.

of measur

der to redu

urse offerin

atrix Budge

, including S

Estcio star

f Academia i

mia

rso

%

5

%

5

%

rnings

ired since tfollow-up of

atal, Rio Gr

al, already i

2011. The

l be conside

ugh slightld strong en

posted a n

ing the cou

ntation of

existing op

n of the n

lthough thi

s to bring i

e rental co

g;

t; and

AP, payroll

ted developi

n the future

elease

e beginninthe Compa

nde do No

n an advan

unit is also

rably above

behind inollment fig

egative EBI

se of the y

cleo Nata

ration in Na

ew educati

result is lo

s results in

ts and cost

nd others.

ng the dista

.

ofys

te)

ced

ell

the

theres

DA

ar,

l, a

tal.

nal

er

line

of

nce


13/28

T

I

r

r

la

r

Ifi

T

R

r

r

t

R

F

F

F

R

E

Fi

DN

S

In

(-

N

(-

A

inanci

ble 18

2Q11, the

venues, of

turns on fin

te tuition p

mained in li

addition tancial resul

et Inc

ble 19 R

ecurring n

curring net

sult, the R

illion increax and social

$ MM

inancial Rev

Fines and i

Income of

Other

inancial Exp

Bank charg

Interest an

Debt reliefFinancial Di

Other

inancial Res

$ MM

ITDA

nancial Result

epreciation andon-operating re

cial Cont ributio

come Tax

) Operating Fina

et Income

) Non-Recurring

djust ed Net In

l Resu

reakdown

financial r

hich R$2.7

ancial inves

yments rec

e with the

the reductt: (i) R$1.2

me

econciliati

t income i

income is e

$1.6 million

e in incomcontribution

enue

terest charg

financial appli

nses

es

d fianancial c

counts

lt

Amortizationult

ncial Result

Costs and Expe

come

lt

of Financi

esult was

million wer

ments due

rded a tem

revious yea

ion in revenillion in int

n of EBIT

n 2Q11 total

plained by

increase in

e tax and).

d

ations

arges

nses

l Result

negative R

in fines an

o the reduc

porary redu

rs figures.

ue, the follrest and fin

A and Net

ed R$11.4

he 41.7% g

depreciati

ocial cont

2Q11

7

3

3

0

(3

(1

(0

-(1

(1

4

2

13

$2.0 million

interest re

ion in the

tion in 2Q1

wing increancial charg

Income

illion, again

rowth in re

on and a

ibution (d

2Q11

.7 3.

.8 1.

.6 1.

.3 0.

.7 ) (5.

.0) (1.

.1) (1.

-.2) (2.

.4) (0.

.0 (2.

Q10 2

18.7

4.0

(7.7)(1.1)

-

(0.1)

(3.8)

9.9

(2.0)

7.9

2

, due to the

eived for la

ompanys c

1 as they w

ses in finans and (ii) R

st R$9.9 mil

urring EBIT

ortization

e to the re

Change

3 -57.1%

1 -71.1%

8 -50.0%

4 33.3%

3) 43.2%

2) 20.0%

3) 1200.0%

N.A.3) 91.7%

5) -64.3%

0) N.A .

11 Chan

26.5 41

(2.1)

(9.3) 2(0.2) -81

(0.6)

(1.7) 160

(1.1) -71

11.4 15

(3.5) 7

7.9 0

11 Ea

reduction

e tuition pa

sh flow. Fin

ere concent

cial expens1.1 million i

ion in 2Q10

A, offset b

(due to hig

uction in th

1H10

15.

7

7

0

(8 .

(2

(0

-(2

(2

7.

ge 1H

.7%

N.A.

.8%

.8%

N.A.

.0%

.1%

.2%

.0%

.0%

rnings

y R$4.4 mil

ments and

es and inter

rated in 1Q

s contributin financial

. The 15.2%

decrease i

her CAPEX)

e deferred

1H11

.0 12 .

.2 6.

.2 5.

.6 0.

.0) (13 .

.3) (2.

.5) (1.

(3..9) (3.

.3) (1.

.0 (0 .

10 1H1

58.4

6.9

(15.1) ((1.1)

(0.2)

(0.4)

(7.2)

41.3

(7.7)

33.6

elease

lion in finan

R$1.8 millio

est received

1, but in 1

d to the loiscounts.

increase in

the finan

and the R$

sset of inc

Change

-15.3%

9 -4.2%

0 -30.6%

8 33.3%

) 63 .8%

3) 0.0%

8) 260.0%

3) N.A.9) 34.5%

8) -22.9%

) N.A .

1 Chang

74.3 27.2

(0.4) -105.8

18.5) 22.5- N.

(1.0) 400.0

(2.9) 625.0

(6.9) -4.2

44.5 7.7

(7.9) 2.6

36.7 9.2

cial

in

on

11

er

the

ial

2.2

me

.


14/28

TE

e

T

*D

Ts

t

a

c

T

d

t

sl

cr

ot

t

It

s

t

D

ccoun

e numbercluding the

d of 2Q10.

ble 20 A

The net revenys Receivable.

e FIES acudents who

xes. In oth

counts rec

rtificates an

e increase

linquency.

finish the

ightly during

iteria adopt

erdue moran 180 day

is credit sho

is very imp

bjective as

an 180 day

oubtful Acco

ccount s Re

ross Accoun

FIESTuition montCredit Cards

AgreementsFees receiva

Credits t o id

Provision foret Account s

(-) FIESet Account s

et revenue

ays Receiva

s Rece

of days foacquired co

ccounts R

e of the comp

counts rectook out lo

er words, it

ivable, the

d are waitin

in student

t is commo

emester ev

the semest

d by the C

than 180 dis a credit

uld be provi

rtant to not

essments,

s is provisi

unts on Ta

eivable (R$

t s Receivabl

hly feeseceivable

receivableles

ntify

bad debtsReceivable

Receivable

(last twelve

bles Ex. FIES

ivable

receivingmpanies, th

ceivable a

anies acquired,

eivable, wns from Ca

represents

balance s

to be used

tuitions re

knowledge

n without

r until stud

mpany, wh

ays), i.e. acelated to an

sioned in th

ice that Est

ut on actu

ned, as sh

le 20.

M)

x. FIES

onths)*

nd Av

from stue number dr

d Average

which were i

ich grew Rixa Econmi

tax credits

eet include

or repurcha

ceivable a

that once e

aying the t

nts need to

ich occurs a

ounts receiex-student.

P&L.

cios policy

l delinquen

wn in the t

2Q10

252.3

5.4215.3

6.0

23.91.8

(2.4

(102.2147.7

(5.4142.4

1,010.0

51

14

erage

ents (tuitiops to 59 d

Receivabl

cluded in the

$4.2 millionca Federal

without an

s additional

sed.

d in days r

nrolled in a

ition fees.

enroll in a

t most ever

ables overThis stude

or provision

y rates. To

able below,

3Q10

264.1

17.5190.411.8

41.52.9

) (7.8

) (107.3148.9

) (17.5131.5

1,008.1

47

2

eceiv

ns and agays, against

e Days

onsolidated 2

in the quarnd are use

risk of del

R$18.2 m

eceivables

higher educ

s a result,

ew semest

y 180 days

ue more tht did not re

s for doubtf

put it clearl

in compari

4Q10

210.9

15.3157.4

6.9

26.94.4

) (9.2

) (45.4156.4

) (15.3141.1

1,016.2

50

11 Ea

ble Da

eements) c55 at the c

11 results, wa

ter, consistby Estcio

nquency. I

illion that

in relation

tion institut

it is normal

r and reneg

(hence the

n 180 daysew its enrol

l accounts i

y and simpl

on with th

1Q11

234.4

21.2164.612.8

31.74.1

) (5.5

) (49.9179.0

) (21.2157.8

1,036.0

55

rnings

ys

ame to 60lose of 1Q1

s annualized fo

of educatifor the pay

addition t

ere alread

to 1Q11refl

ion, student

that delinq

otiate their

policy of pr

and not renllment and

s not based

y, each R$

Balance o

2Q11

273.1

25.4198.710.8

32.45.7

) (6.8

) (55.8210.5

) (25.4185.0

1,119.3

60

elease

days in 2and 51 at

r the calculatio

nal creditsment of fed

the credit

converted

ects the hig

have the ri

ency rates

ebts within

visioning lo

egotiated me consider

on estimate

overdue m

f Provisions

2Q11 ex.acquisition

250.

25.178.10.

30.5.

) (7.

) (44.198.

) (25.172.

1,050.

5

11.the

n of

forral

in

in

her

ght

rise

the

ans

orehat

or

ore

for

s

4

612

87

4)

6)4

6)8

5

9


15/28

T

I

A

f

t

S

t

s

a

t

T

T

S

t

Fi

r

(

rc

o

r

B

F

N

O

O

O

O

O

T

B

N

O

O

O

O

O

T

ble 21 A

this conte

ministrativ

ctors, the

ere is no ris

eaking of

aximize ren

e commerci

en in the t

alyzing the

an 60 days.

ble 22 A

facilitate

atements,

bles presen

rst, we expl

ach more t

Recovery of

concile thensider the

erdue mor

gistered as

reakdow n o

IES

ot yet due

verdue up t

verdue from

verdue from

verdue from

verdue more

OTAL

reakdow n o

ot yet due

verdue up t

verdue from

verdue from

verdue from

verdue more

OTAL

% over Acc

ging of Ac

t, if all me

Expenses"

ethod for pr

k of further

greements,

vations enr

al interest f

able below,

aging of the

In Estacio,

ging of Ag

nderstandin

hich provid

ed below sh

in how we

an 180 da

Defaults)

additional p FIES Credit

than 180

PDA expens

f Account s

30 days

31 to 60 day

61 to 90 day

91 to 179 d

than 180 da

f A greemen

30 days

31 to 60 day

61 to 90 day

91 to 179 d

than 180 da

ount s Recei

ounts Rec

sures to re

section) are

ovisioning

rite-offs in

meaning, t

ollment rate

cused on st

which indic

agreement

nly 21% of

eements R

g, we have

es a step-b

ow the reco

et to the p

s, the amo

o arrive at

rovision inRisk and

ays and he

s.

Receivable

s

s

ys

ys

ts by Age (

s

s

ys

ys

vable

ivable

duce Estaci

not sufficie

ill automati

the future.

itions due a

s through a

udent base

ates that a

is crucial t

the agreem

eceivable

reproduced

-step expla

ciliation for

ovision that

nt recovere

the periods

the balancehe Write-

nce already

y Age (R$

$ million)

15

s provision

t to restrai

ally capture

nd renegoti

policy of gr

nd the fina

reements r

monitor th

nts are in t

the followin

nation of h

the period

is presente

d through c

Additional

sheet withff of Collec

provisioned

million)

2

for doubtf

any increa

this differe

ted, there i

anting rene

cial health

present on

e percentag

at position.

g table fro

w the prov

f six month

in the P&L.

ollection ag

Provisions

the periodtions and U

. The result

2Q10

5.4

32.9

28.6

23.4

22.6

38.6

100.8

252.3

2Q10

13.3

2.6

1.0

1.0

2.8

3.3

23.9

16%

11 Ea

l accounts

e in delinq

ce and gra

s always th

otiations.

f our recei

y 15% of t

of securiti

the Explic

ision is con

ended on J

Starting fro

nts for rece

(six months

provision iidentified

R$22.8 mil

%

2%

13%

11%

9%

9%

15%

40%

100%

%

56%

11%

4%

4%

12%

14%

100%

rnings

(listed in th

ency levels

ually take i

commerci

e seek a b

ables portfo

otal receiva

s already o

tive Notes

stituted eve

une 30, 201

m the total

ivables alre

ended Jun

n the P&L,eposits rel

llion, is exa

Q11 %

25.4 9

62.4 23

35.9 13

27.9 10

27.9 11

37.8 14

55.8 20

273.1 100

Q11 %

19.1 59

4.8 15

1.5 5

1.4 4

2.4 8

3.1 10

32.4 100

15%

elease

e "General

due to exte

to the P&L,

l temptatio

lance betw

lio. This can

bles. Moreo

erdue for m

o the Finan

y quarter.

1.

receivables

dy provisio

30, 2011).

we shouldating to cre

tly the amo

%

%

%

%

%

%

%

%

%

%

%

nd

nal

so

to

en

be

er,

ore

cial

he

hat

ed

To

lsodits

unt


16/28

T

H

S

I

o

d

o

N

t

p

c

a

T

I

T

I

li

p

R

T

A

T

R

T

A

T

E

C

A

ble 23 C

ere, we de

eet. From

crease in Pr

the Acquir

ys, doing t

the Provisi

ote that this

facilitate

ovisioned,

llected nor

ounts will r

ble 24 R

nvest

ble 25 C

2Q11, mai

raries and

odel (conte

oject, aime

$ MM

uitions and f

cquired Com

OTAL

$ MM

uitions and f

cquired Com

OTAL

m R$ m illio

APEX

Maintenanc

Academic

New IT Ar

Expansion

Computers

cquisitions

onstitution

onstrate h

he starting

ovision and

d Entities" c

e same op

n for Doubt

write-off is

uarterly co

uch write-o

ally throu

educe the p

econciliati

ents (

APEX B rea

ntenance

laboratories

t basis), an

d at replaci

es

anies

es

anies

e

odel

uitecture

of the Pro

w to recon

balance of

the balance

olumn). Fin

ration in Gr

ul Accounts

made every

parison. Si

f does not

h the mec

rovision for

n of the P

APEX

kdown

APEX total

in our unit

R$6.1 milli

ng our lega

Gross incin the profo r deliq

12/31/

2Q10

5.5

3.5

2.0

-

-

-

-

vision for

ile the PDA

rovision for

of Provision

lly, we rem

oss Account

on June 30,

quarter wit

nce all rece

ffect Net R

anisms use

oubtful acc

rovision fo

and Ac

ed R$17.0

. We also i

on in the ac

cy academi

reasevisionency

Delire

46.1

1.1

47.3

010Addpro

45.4

-

45.4

2Q11 C

35.0

17.0

4.4

6.1

3.3

4.2

33.8

16

oubtful A

of the P&L

doubtful a

for doubtfu

ved in the

s Receivable

2011.

h a simple o

ivables ove

ceivables.

d by Estci

unts.

r Doubtful

quisiti

illion, alloc

vested aro

quisition of

systems. I

uencyover

Adpr

(22.3)

-

(22.3)

itionalision,et

ACo

23.8

1.1

25.0

hange

42.2%

385.7%

125.6%

N.A.

N.A.

N.A.

N.A.

2

counts in t

with the v

counts as o

l accounts o

olumn "Wri

exactly in t

bjective of

due more

lso note th

o, and whe

Accounts B

ns)

ted chiefly

nd R$4.4

ardware an

nvestmen

ditionalvision,net

23.8

1.1

25.0

quiredmpaniesffect

W

-

10.0

10.0

1H10

13.0

9.3

3.7

-

-

-

-

11 Ea

he 1H11 P

riation of t

f December

the acquire

e-off", the

he same a

aintaining

han 180 d

t these rec

n we recov

alances in

to the upgr

illion in str

licenses fo

s in expa

reditrisk -FIES

Wrichauni

d0.2

-

rit e o ff 06/

(24.6)

-

(24.6)

1H11 C

61.5 3

24.1

7.7

6.4

9.2

14.1

61.0

rnings

&L

he balances

31, 2010,

d companie

rovisions of

ount, reach

12-month

ys are alre

eivables will

er these re

the Balanc

de of syste

ucturing the

r the IT arc

sion, revi

te off ofrges andentifiedosits

(2.4)

(2.4)

30/2011

44.6

11.2

55.8

hange

73.1%

159.1%

108.1%

N.A.

N.A.

N.A.

N.A.

elease

in the Bala

e add the

(in the "Ef

more than

ing the bala

history in or

ady necess

continue to

ceivables, t

e Sheet

ms, equipm

new acade

itecture rev

alization

Total

21.6

1.1

22.8

nce

Net

ect

60

nce

der

rily

be

eir

nt,

mic

iew

nd


17/28

i

w

in

s

h

R

T

Cp

T

F

I

a

e

O

e

ina

t

I

a

c

h

(i

R

S

C

T

N

provemen

orks in the

vestments t

ftware in o

ve replace

$33.8 millio

apitali

ble 26 C

ash at thegged to the

e debt bal

NAME agre

addition, w

d the balan

d of 2Q11.

ver the last

ucational

working caove), also l

e minimum

an effort t

aintain a rel

pear. Estc

pital struct

s taken a s

) An actiomanage

and deta

provided

$ MM

hareholders

ash & Cash

ot al Gross D

Banking Loa

Short Ter

Long Term

Commitment

Taxes Paid in

et Cash

ts of units

Sulacap, I

o renew our

r laboratori

approxima

and related

ation

apitalizati

nd of 2Q11CDI rate, in

ance of R$5

ment and t

e have com

ce payable

3 years, Est

odel and,

pital needs,d to the ca

needed to o

raise awar

atively low l

io has agre

re and enab

ries of actio

n plan and

ent of rece

iled analyse

the cost of

' Equit y

Equivalents

eb t

s

s to Pay (Ac

Installments

totaled R$

bina, Tom

computer

s and incre

ely 10,000

to the acqu

nd Ca

n and Cas

stood at R$governmen

9.1 million i

e capitaliza

mitments fo

in installme

cio has inv

ost recently

evident froh burn, wit

perate.

ness in the

evel of cash

ments with

le the Comp

ns to impro

a dedicat

ivables and

s of possibl

apital impli

usitions)

.3 million a

Jobim and

etwork (R$

ase our stu

computers t

isitions of F

h

68.2 million,t bonds and

2Q11 corr

ion of equi

future pay

ts of taxes

sted nearly

, in expansi

m the increthe cash b

organizatio

and wait t

the IFC fo

any to take

e cash man

d team to

accounts pa

sales and

it in the ope

06 /30 /20

492

172

(6

(

(

(

(

(

165

17

d encompa

Marajoara

14.1 million

ents perce

hroughout

TERN and

which wasin certificat

sponds to

ment leasin

ents relate

to determin

all its IPO p

n through

se in dayslance comi

of the nee

raise capit

a new tra

advantage

agement, n

identify o

yable to the

lease-back

ration is attr

10 06/ 30/

.2 6

.3

.8 ) (

.5)

.3)

.2)

.3)

.0)

.5

2

ssed the re

II Campus

in the year)

tion of the

razil. Inves

cademia do

conservativs of deposit

he R$48.5

g expenses

d to acquisi

that our g

roceeds in r

reenfields a

receivable,g close to a

d to better

l when opp

che of res

f the opport

tably:

pportunities

sale of pro

operations

active;

2011

04.8

68.2

72.1)

(59.1)

(4.1)

(54.9)

(7.7)

(5.3)

(3.9)

11 Ea

tructuring, r

s. Mainten

. In order t

uality, sinc

tments in

Concurso in

ly invested is at top-tier

illion loan

n accordanc

ions made i

oss debt to

estructuring

nd acquisiti

(as commenlevel that th

anage its

ortunities fo

urces in or

unities. At t

for impro

erties not b

f the few

rnings

enovation a

ance CAPE

run the n

the beginn

acquisition

2Q11.

in fixed-incoBrazilian ba

aken out fr

e with Fede

n the order

taled R$ 71.

its units, de

ns. Moreov

ted in the re Managem

ash, the Co

r expansion

er to slight

e same tim

ement, ran

eing used b

roperties st

elease

nd construc

also inclu

w systems

ing of 2011

s amounte

me instrumks.

m the IFC,

ral Law 11,6

f R$7.7 mil

8 million at

veloping a

r, the incre

elevant secnt consider

mpany plan

and acquisi

ly leverage

, the Comp

ging from

y the Comp

ill owned b

ion

ed

nd

we

to

nts

the

38.

lion

the

ew

ase

ionto

to

ion

the

any

the

ny

it,


18/28

(ii

(ii

(i

C

As

rc

1 F2

) A projectdelinque

i) Project f) Beginnin

final obj

ash Fl

hart 3 Re

a result offficient toade in recur

hart 4 C

ith the losplacementmpensated

inancial resultreakdown of I

and an acti

cy rates am

r recoverin

of talks wi

ctive of alig

w

curring Op

the above-ffset the dering CAPEX

sh Flow (

in recurrif computer

by the inflo

xcluding the ovestments: Ac

on plan cov

ong current

escrow leg

th Stern St

ing executi

erational C

entioned fcline in the(or mainten

$ million)

g operationnetwork aof funds fr

erating financiuisitions (R$3

ring the Fin

students;

l court dep

wart for the

e performa

ash Flow (

ctors, Estworking cance), leadin

- Quarter

al cash flod expansio

om IFC in th

al result..9 million) + E

18

ance, Opera

sits;

gradual ad

ce appraisa

R$ m il l ion)

ios operatiital resulting to a negat

, discretions) and the amount o

pansion (R$3.

2

tions, Educa

option of th

l and compe

- Quarter

nal cash flofrom the i

ive operatio

ary CAPEXpayment

R$48.5 mill

million) + On

11 Ea

tion and Ma

EVA meth

nsation to t

w (recurrinncrease in ral cash flow

investmentf dividendsion.

Time (R$14.1

rnings

rketing area

dology by

is metric.

EBITDA) ieceivables aof R$10.4

(New Edufor fiscal y

million)

elease

to contain

stcio with

2Q11 wasnd investmillion.

cational Moear 2010 w

the

the

notnts

el,ere


19/28

C

IC

C

Dc

1 F2

hart 5 - Re

the half-yepital and m

hart 6 Ca

espite the pnsumed a l

inancial resultreakdown of I

curring Op

ar, operatioaintenance

sh Flow (R

ositive recurrge part of

xcluding the ovestments: Ac

rational C

al cash flowAPEX (recu

$ million)

ring operatihe opening

erating financiuisitions (R$6

ash Flow (

(recurringring) shortf

Half-Year

nal cash flocash balanc

al result..1 million) + E

19

$ million)

BITDA) stoll.

w, discretio, which wa

pansion (R$9.

2

Half-Yea

d at R$74.

ary investmreplenishe

million) + On

11 Ea

r

million, suf

ents, togethby the IFC

Time (R$28.2

rnings

ficient to co

er with diviloan.

million)

elease

er the Wor

end payme

ing

ts,


20/28


21/28

T

u

h

I I

I

p

r

fi

d

t

o

C

y

Fi

S

O

t

L

O

c

L

I

y

+

e E3 units

its. Since t

ve been off

I Trainee

the first h

ogram con

tation and

al project t

velopment

chnical skill

manageme

nsequent t

ung individ

nance

hare Buyb

n July 15, w

5% of the

vel I ADR

n June 17,

ainly those

rresponds t

an from t

2Q11, we

ars, with a

3.5% p.a.

are currentl

e inaugurati

ered and 30

rogram

lf of the y

ists of thre

ake part in

o introduce

plans, prepa

. Attracting

nt and merit

o the succe

als from all

ck Progra

e announce

ree float of

Program

e launched

residing ab

o one comm

e Internat

received th

grace period

operationa

on of E3, m

events (fair

ar, we com

modules i

training wo

new ideas t

red based o

and retaini

ocracy.

ss of previ

over Brazil

the 2nd Sh

66,475,925.

our level I

road, to in

on share (E

ional Fina

funds rela

of three ye

l in the Salv

ore than 40,

, workshop

pleted the s

which trai

kshops. At

the Comp

the specifi

g young tal

us program

ill join the

re Buyback

The Progra

DR Progra

est in the

STC3) and

ce Corpor

ing to the l

rs. The cos

21

dor, Fortal

000 interns

and lectur

election pro

ees will lea

the end of

nys daily o

needs of e

ent is a prio

s, 12,000 s

ompany in

program, th

will be in f

with the o

Company a

is traded in

tion (IFC)

an from IF

will be den

2

za, Florian

ip and over

s) have bee

cess for our

rn about th

the progra

erations.

ach student,

rity for our

udents regi

ugust.

rough which

orce for one

bjective of

nd increase

the US OTC

, totaling R

ominated in

11 Ea

polis, Goini

7,000 form

held.

3rd Trainee

Company

, trainees

rainees will

in order to

anagemen

tered this

up to 3,32

year, endin

xpanding th

the liquidit

market und

$48.5 millio

reais (CDI)

rnings

a, Rio de Ja

l employme

Program.

culture, p

ill be desig

be monitor

perfect their

t model, bas

year, of wh

,796 shares

on July 13

e possibiliti

y of our st

r the ticker

n. The loan

equivalent t

elease

neiro and C

t opportuni

The 18-mo

rticipate in

n a challen

d via indivi

behavioral

ed on a cul

ich 15 talen

, correspon

2012.

s for invest

ck. Each

ECPCY.

matures in

6-month Li

tia

ties

ths

job

ing

ual

nd

ure

ted

ing

rs,

DR

ten

bor


22/28

P

ENscr

Ecr

R

S(NC

Euvo

DfipiMc

Aaq

A

ustain

artnership

tcio has eearly 600 students froeating and

tcio will alntest, orgastored and

elocation o

owing its fPP) in the

early 300 empany.

tcio owesit, foundedlued for itstreach acti

iraDvida

oubts regarancial matsts in the Bplementedetropolitanrtified upon

the Consolswered queestions abo

the Brs stajority (60

bility

with Rock

ntered intodents fromthe Comm

diting TV R

so offer 2,5ized by Roelivered to

f CSC to th

ith in the Riurano comployees ar

its 40 yearsin 1970.easy accesities to furth

s(Clear y

ing grammand perce

rs train stain 2010. Transportatiselection.

ao stationstions fromut Portugue

ation, the s) asking qu

roject

in Rio

a partnersthroughoutunication, Cick in Rio, w

00 enrollmck in Rio, aMusic Schoo

e Reboua

de Janeirounity, Estnow worki

of successow, with tand histori

er strength

ur Doubts

r, verb agrtages weretion (run byis servicen), the CPTortuguese

, the Tira-3,300 people.

rvice has estions abou

ip with RocBrazil werenema, Publihich will be

nts in Shornd will collels. All the ac

s Campus i

state govercio transferrng at the u

in post-secoe installatiocal traditionn the recov

) Project r

ement, writithe most frthe CPTM)

is providedM, the subwnd math pr

vidas per, 50% of w

isted sincet math, whil

22

k in Rio, telected to acity and Adired on gia

-Duration Cct musical itions involv

n Morro do

ments actied its Sharit, which al

ndary educn of the UP. Estcio alry of the mi

ecords mo

ng, use of tquent amo

and the Conthrough aay system afessors fro

onnel begahom asked

ebruary 20e the remai

2

e worlds lct as voluntertising cot screens d

ourses to tnstrumentsEstcio stu

Turano

ns, after thd Serviceso helps red

tion to theP, hopes arready provicro-region.

re than 8,0

he crasis ing the nearlsolao Metpartnershipd Estcio, tEstcio too

work in Ouestions re

0 and, by Jing 40% as

11 Ea

rgest musicer studentsrses will bering the ev

e winnersat its campents, profe

installationenter (CSC

uce costs w

ebouas Cthat the r

es and plan

00 instanc

Portuguese,8,200 que

subway sbetween She only Postk turns ans

tober 2010.arding math

ne 2011, hed question

rnings

and entertat the evenresponsiblent days.

f the Forus in Rio dsors and e

of the Paci) to the Rebith rent and

mpus, the igion has bs to expan

es of free s

the rule ofstions at thtation sinceM (Ministr

-Secondaryering quest

In only eig, while the

d served 4,s about Por

elease

ainment ev. A team ofor produci

Better WoJaneiro to

ployees.

ying Policeouas Camutilities for

nstitution'sen once aits commu

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hree, statis"Tira-Dvi

the projectof So P

institution toons.

t months, tther half as

00 people,uguese.

nt.50

ng,

rldbe

nitus.the

irstainity

ics,as"as

ulobe

heyked

the


23/28

Trethe

uarter

Conferen

Date: Aug

Time: 10 a

Connection

Webcast:

Replay: av

19, 2011

Access Dial

Access Cod

e statements ilating to Estcie future of thonomy, the in

ly Con

e Call (in

st 12, 2011

.m. (Braslia

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ncluded in thisos growth pro

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ortuguese

/ 9 a.m. (U

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articipacoe

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report relatedpects, are merse statementsational marke

Calls

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4971

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through Au

to the prospecly projectionsdepend substas and therefore

23

Con

Date

Tim

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Acce

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s of the businand as such arntially on chaare subject to

2

erence Cal

: August 12,

: 12 p.m. (B

ection Dial-i

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y: available011

ss Dial-in: +

ss Code: 10

ss, estimates obased exclusi

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11 Ea

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2011

raslia) / 11

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staciopartici

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f operating anvely on the Maconditions ant prior notice.

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24/28

I

R

G

M

O

G

S

T

N

C

P

R

T

T

N

D

G

(-

R

R

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(-

R

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N

S

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RR

ncome

$ MM

ross Operati

onthly Tuition

thers

ross Revenu

cholarships an

axes

et Operating

ost o f Servic

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entals / Real E

extbooks Mat

hird-Party Serv

on-Recurring C

epreciation

ross Profit

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ecurring Gro

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rovisions for Darketing

eneral and A

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thers

on-Recurring E

epreciation

BIT

BIT Margin

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ecurring EBI

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nancial Result

epreciation an

on-operating r

ocial Contributi

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et Income

on-Recurring C

ecurring Netecurring Net

State

g Revenue

Fees

Deductions

Discounts

Revenue

s

tate T axes Ex

rials

ices and Othe

osts

g Costs

s Profit

s Margin

l and Admini

es

ubtful Debts

ministrative

xpenses

g Costs and E

ancial Result

T Margin

n and Amort

DA

TDA Margin

Amortization

esult

on

osts and Expe

IncomeMargin

ent in

penses

s

strative Expe

Expenses

penses

ization

nses

IFRS

nses

24

2Q10

369.2

364.8

4.4

(111.0)

(100.2)

(10.8)

258.2

(186.0)

(137.4)

(24.3)

(4.3)

(14.2)

(0.2)

(5.7)

72.2

0.2

72.4

28.0%

(67.0)

(25.7)

(15.1)(10.6)

(39.3)

(17.1)

(20.4)

(1.8)

(2.0)

5.1

2.0%

2.0

3.8

11.0

4.3%

7.7

18.7

7.2%

4.0

(7.7)

(1.1)

-

(0.1)

7.9

2.0

9.93.9%

Cons

2

Q11 Cha

407.8 1

399.5

8.3 8

117.9)

(105.2)

(12.7) 1

289.9 1

203.3)

(147.0)

(25.8)

(9.6) 12

(13.7) -

(1.4) 60

(5.8)

86.5 1

1.4 60

87.9 2

30.3% 2.

(73.9) 1

(31.8) 2

(17.5) 1(14.3) 3

(38.6) -

(16.2) -

(20.3) -

(2.1) 1

(3.5) 7

12.6 14

4.3% 2.

3.5 7

1.1 -7

17.1 5

5.9% 1.6

9.3 2

26.5 4

9.1% 1.

(2.1)

(9.3) 2

(0.2) -8

(0.6)

(1.7) 160

7.9

3.5 7

11.4 13.9% 0.

olidated

11 Ea

nge 2Q

.5% 3

9.5% 3

8.6%

.2% (1

5.0% (1

7.6% (

.3% 2

.3% (1

7.0% (1

6.2% (

3.3%

3.5% (

0.0%

1.8%

.8%

0.0%

.4%

p.p. 2

.3% (

.7% (

5.9% (4.9% (

.8% (

5.3% (

0.5% (

6.7%

.0%

.1%

p.p.

5.0%

1.1%

.5%

p.p.

.8%

.7%

p.p.

N.A.

0.8%

1.8%

N.A.

0.0%

.0%

5.0%

.2% p.p.

rnings

10 2Q11

9.2 391 .

64.8 385

4.4 5

1.0) (114 .

00.2) (102

10.8) (11

8.2 277 .

6.0 ) (194 .

37.4) (140

24.3) (25

(4.3) (9

14.2) (13

(0.2) (0

(5.7) (5

2.2 83 .

0.2 0

2.4 84 .

.0% 30.3

7.0) (70 .

5.7 ) (30 .

15.1) (1610.6) (13

9.3) (36 .

17.1) (15

20.4) (19

(1.8) (1

(2.0 ) (3 .

5.1 12 .

.0% 4.6

2.0 2

3.8 1

1.0 16 .

.3% 5.9

7.7 9 .

8.7 25 .

.2% 9.2

4.0 (1

(7.7) (9

(1.1) (0

- (0

(0.1) (1

7.9 8 .

2.0 2

9.9 11 ..9% 4.0

Excluding A c

elease

Change

.6 6.1

.9 5.8

.6 27.3

.3) 3.0

.6) 2.4

.8) 9.3

.2 7.4

.0) 4.3

.0) 1.9

.0) 2.9

.5) 120.9

.0) -8.5

.8) 300.0

.7) 0.0

.2 15.2

.8 300.0

.1 16.2

% 2.3 p.

.4) 5.1

.4) 18.3

.6) 9.9

.8) 30.2

.5) -7.1

.7) -8.2

.1) -6.4

.7) -5.6

.5) 75.0

.8 151.0

% 2.6 p.

.5 25.0

.0 -73.7

.4 49.1

% 1.6 p.

.2 19.5

.6 36.9

% 2.0 p.

.7) N.

.2) 19.5

.2) -81.8

.6) N.

.8) 1700.0

.4 6.3

.5 25.0

.0 11.1% 0.1 p.

quisitions

.

.

.

.

.

.

.


25/28

R$ MM

Gross Opera

Monthly Tuiti

Others

Gross R even

Scholarships a

Taxes

Net Operati

Cost of Serv

Personnel

Rentals / Real

Textbooks M

Third-Party S

Non-Recurrin

Depreciation

Gross Pro fit

(-) Non-Recur

Recurring Gr

Recurring G

Selling, Gen

Selling Expe

Provisions for

Marketing

General andPersonnel

Others

Non-Recurrin

Depreciatio

EBIT

EBIT Margin

(-) Non-Recur

(-) Operating

Recurring E

Recurring E

(-) DepreciaRecurring E

Recorring E

Financial Resu

Depreciation

Non-operatin

Social Contrib

Income Tax

Net Inco me

Non-Recurrin

Recurring N

Recurring N

t ing Revenu

n Fees

ue Deductio

nd

Documents

Estácio: 2Q11 Earnings Release